B58/100FDD 2025
Yogurtland — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
70
Government-backed loans issued
Default rate
8.2%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$27.8M
Avg loan size
$397K
Participating lenders
30
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01MINORNo Item 19 (Average Net Income) disclosure creates inability to assess true profitability despite $875k average revenue
- 02MINORUnknown unit growth trajectory for 202-unit system raises concerns about whether chain is contracting, stagnant, or growing
- 03HIGHThree litigations including fraud and franchise law violations within recent period indicate material franchisor-franchisee disputes
- 04MINORUnprotected territory creates direct competition risk from other Yogurtland locations or brand cannibalization
- 05HIGHGoing Concern status of FALSE suggests potential financial instability or reporting concerns at franchisor level
- 06MINOR$827,500 in damages/fees paid in one settlement indicates serious contractual or operational breach
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.